BTC price is faltering right at the 61.8% Fibonacci Retracement level, triggering a slight pullback in altcoins and sapping the momentum out of this week’s initial breakout to $45,000.
Bitcoin (BTC) and the US equity markets are facing selling on Feb. 16 as traders seem to be trimming positions in assets perceived to be risky on the accusation by NATO that Russia continues to build troops near the Ukrainian border.
This is contrary to claims by Moscow that Russian troops are returning to their permanent deployments after completion of the exercise. This geopolitical uncertainty could result in increased volatility in the near term.
However, the longer-term fundamentals continue to strengthen. PwC Luxembourg, in a recent report, said that 61% of 123 Luxembourg-based financial players have either started or plan to start their “crypto journey” soon.
JPMorgan has opened a virtual lounge in Decentraland’s Metajuku Mall, taking the first step into the metaverse, which the bank believes will present a $1-trillion opportunity.
Even Warren Buffet who has been a vocal critic of Bitcoin until now seems to be warming up to the FinTech sector. Berkshire Hathaway’s security filing shows that the firm has increased its holdings in Nubank, the largest fintech bank in Brazil, and reduced exposure in Visa and Mastercard stock.
Let’s study the charts of the top-10 cryptocurrencies to determine the near-term price action.
BTC/USDT
Bitcoin bounced off the 20-day exponential moving average ($41,938) on Feb. 14 but the bulls could not push the price to the overhead resistance at $45,821. This suggests that higher levels continue to attract selling.
The moving averages have completed a bullish crossover and the relative strength index (RSI) is in the positive territory, indicating that the sentiment is positive. The bulls are likely to buy the dips to the 20-day EMA.
If the price turns up from the current level or rebounds off the 20-day EMA, the buyers will attempt to drive the price above the neckline of the inverse head and shoulders (H&S) pattern. If they succeed, the bullish setup will complete, signaling a possible reversal.
Contrary to this assumption, if the price breaks below the 20-day EMA, the BTC/USDT pair could drop to $39,600. This is a critical level for the bulls to defend because a break below it could intensify selling.
ETH/USDT
Ether (ETH) broke and closed above the moving averages on Feb. 15, but the bulls are struggling to sustain the price above the 50-day simple moving average ($3,068). This indicates that bears continue to sell on rallies.
The sellers will now try to pull the price back below the moving averages. If they succeed, the ETH/USDT pair could drop to the strong support at $2,652.
Conversely, if the price rebounds off the moving averages, it will suggest that traders are accumulating on dips. The bulls will then again attempt to drive the price above $3,283.66. A close above this level will complete an inverse H&S pattern, which will indicate the start of a possible up-move. The pair could then rally to $4,000.
BNB/USDT
Binance Coin (BNB) soared above the 20-day EMA ($410) and the downtrend line on Feb. 15 but the bulls could not clear the hurdle at the 50-day SMA ($434).
The bears are trying to defend the 50-day SMA and pull the price back below the 20-day EMA. If they manage to do that, the aggressive bulls could get trapped and the BNB/USDT pair may drop to $390.60.
On the other hand, if the price rebounds off the 20-day EMA, it will suggest that the sentiment has turned from sell on rallies to buy on dips. That could increase the possibility of a break above the 50-day SMA. If that happens, the pair may start a rally to the overhead resistance at $500.
XRP/USDT
Ripple (XRP) is facing stiff resistance near $0.85 for the past few days. The bears will now try to pull the price to the breakout level at $0.75.
The moving averages have completed a bullish crossover and the RSI is in the positive zone, indicating that bulls have a slight edge. The buyers are likely to defend the 20-day EMA ($0.76) aggressively.
If the price rebounds off this level, the bulls will again attempt to clear the overhead barrier at $0.85. If that happens, the XRP/USDT pair could rise to $0.91 and later to the psychological level at $1. This positive view will invalidate if bears sink and sustain the price below $0.75.
ADA/USDT
Cardano (ADA) bounced off the $1 support on Feb. 14 and reached the 20-day EMA ($1.11) on Feb. 15. The bears are unwilling to let go of their advantage and are defending this level aggressively.
If the price remains below the 20-day EMA, the sellers will make one more attempt to…
cointelegraph.com